The Nigeria Deposit Insurance Corporation (NDIC) has launched a massive nationwide auction of Heritage Bank properties, marking a pivotal move to recover funds for uninsured depositors following the bank’s collapse. This liquidation sale, which covers properties in 36 locations, is set to commence on December 4, 2024, with both corporate and private bidders invited to participate.
In a statement released on Monday, NDIC Director of Communications Bashir Nuhu emphasized the importance of the auction for financial stability and deposit protection. “The sale of these assets will be conducted transparently, via competitive bidding, ensuring that every qualified bidder has a fair chance while maximizing asset value for liquidation dividends,” Nuhu stated.
The auction follows the Central Bank of Nigeria’s (CBN) decision to revoke Heritage Bank’s operating license on June 3, citing persistent financial instability. Acting as the bank’s liquidator, the NDIC is now handling the asset disposal process under Section 62 (1)(d) of the NDIC Act, 2023.
The NDIC invites financial institutions, corporations, and private individuals to join this open bidding process. Interested buyers are required to submit a bid security worth 10% of their offer amount to designated NDIC offices in Abuja, Lagos, Bauchi, Kano, Enugu, and Port Harcourt. Properties will be open for inspection prior to the auction to allow potential buyers full transparency.
Read Also: EDSU governing council refutes replacement of VC.
To promote financial inclusion, preference will be given to financial institutions intending to acquire properties and maintain banking operations in communities previously served by Heritage Bank, thus preserving financial access in affected areas.
“Financial institutions prepared to bid at the highest price will receive preference to enhance community service continuity. However, corporations and private buyers are encouraged to compete fairly,” the NDIC noted.
The NDIC aims to secure fair returns for depositors by maximizing sale values. Since Heritage Bank’s closure, the NDIC has reimbursed insured depositors up to N5 million each within four days using Bank Verification Numbers (BVNs) to locate alternative accounts. As of August, NDIC reported reimbursing approximately 82.36% of total insured deposits, while 17.64% remain held by depositors with account restrictions or missing BVNs.
Deposit holders with funds exceeding N5 million have received the insured amount, with additional payments pending as liquidation dividends after the full sale of Heritage Bank assets and debt settlements.
